What is CPM? ECMP? RPM?

What is CPM? ECMP? RPM?

CPMs are widely misunderstood, and the term is often misused. So this week we’ll cover the basics. Over the next couple weeks, we’ll share with you how CPMs change over time and things you can try to boost them.

What is CPM?

CPM is actually a stat meant for advertisers, not creators. CPM stands for “cost per mille” (mille means “thousand” in Latin, so just think “cost per thousand”). CPM is the amount an advertiser pays to have its ads served against videos 1,000 times. Each time an ad on a video runs completely, it’s called an impression.

But the relevant stat for creators is actually RPM (revenue per thousand)—the average amount you earn for every 1,000 monetized views your videos generate. Confusingly, YouTube typically refers to RPM as eCPM (effective CPM), so we’ll use “eCPM” from here on out.

In short: if your YouTube earnings report shows an eCPM of $4.40 for a given period of time, then you earned $4.40 per thousand monetized views during that period, on average. (Important to note: that’s $4.40 before YouTube takes its cut of ad earnings.)

What determines your eCPM?

The eCPM you see in your YouTube earnings report is determined by the advertisers who run ads against your videos. eCPM can vary for a variety of reasons:

Seasonality: If advertisers’ demand for ads is strong, your eCPM will be higher. For example, you’re likely to see higher earnings in December (when advertisers are spending heavily on holiday campaigns) and lower earnings in January (when advertisers have less demand for ads).
Ad type: The eCPM in your report is typically an average across all the different ad units that YouTube offers. Some advertisers may choose to pay per thousand views, while other advertisers choose to pay only when a viewer takes a specific action on their ad (like clicking on it).
All these factors affect your earnings. We’ll talk about them in more depth next week.

How can you calculate your eCPM?

To calculate your eCPM over a specific period of time, you’ll need to know your views and your revenue for that period.

If your videos received 20,000 views over the past 14 days, and you earned $70 from ads during that time. To calculate your anticipated eCPM, divide your earnings by your monetized views, then multiply by 1,000. In this case, your eCPM would be $3.50:

$70 ÷ 20,000 × 1,000 = $3.50

Keep in mind that not all views are monetized—especially views generated on mobile devices. If a low percentage of your views are monetized, your eCPM will seem low. If you have access to YouTube’s analytics, look at your Monetized Playbacks (rather than your Views) to get a more accurate eCPM estimate. Read more here

For more information on Multi Channel Network’s and YouTube how to videos please check back weekly or subscribe here.

Suite of Free Tools

$0.45 USD - $4.00 USD

Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

$0.00 - $0.00

Estimated daily earnings

$0.00 - $0.00

Estimated monthly earnings

$0.00 - $0.00

Estimated yearly projection

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